1. The University System of Ohio Textbook Affordability Symposium Remarks On Behalf of The Association of American Publishers By Bruce Hildebrand Executive Director for Higher Education April 29, 2008 Remarks On Behalf of The Association of American Publishers By Bruce Hildebrand Executive Director for Higher Education April 29, 2008

2. Key Considerations  Student Readiness: What impact does student preparedness have on the selection of course materials?  Faculty Decision Matrix: Why does a faculty member adopt the course materials used in his or her classroom?  Choice of Course Materials: What price and product options are available to faculty and students?  Student Readiness: What impact does student preparedness have on the selection of course materials?  Faculty Decision Matrix: Why does a faculty member adopt the course materials used in his or her classroom?  Choice of Course Materials: What price and product options are available to faculty and students?

3. Key Considerations  Role of Publishers: What actions are publishers taking to meet faculty needs and improve students’ success rates? Policy Considerations: What impact do publishers’ products have on student success rates and lowering the cost per-pupil for instruction?  Role of Publishers: What actions are publishers taking to meet faculty needs and improve students’ success rates? Policy Considerations: What impact do publishers’ products have on student success rates and lowering the cost per-pupil for instruction?

4. Student Readiness  Only 23% of entering freshmen are college-ready in math, science, English and reading (ACT)  Only 56% of students will graduate in 6 years (The College Board)  At least 30% of students are enrolled in some type of remedial program (National Center for Education Statistics)  Only 23% of entering freshmen are college-ready in math, science, English and reading (ACT)  Only 56% of students will graduate in 6 years (The College Board)  At least 30% of students are enrolled in some type of remedial program (National Center for Education Statistics)

5. Faculty Decision Matrix Source: Faculty Selection and Use of Publisher-Provided Textbooks and Supplementary Materials in the United States, Jim Farmer, im+m, December 2006 55% of all incoming students and 75% of students at two- year schools are unprepared according to faculty (Zogby)

6. Faculty Decision Matrix 77% of faculty said they believe supplementary materials enhance most students’ learning (Zogby) Source: Faculty Selection and Use of Publisher- Provided Textbooks and Supplementary Materials in the United States, Jim Farmer, im+m, December 2006

7. Choice of Course Materials Range of prices for materials adopted for student use: –Introductory Psychology: 216 titles - $23.50 to $120.50 retail –Introductory Algebra: 234 titles - $40.75 to $126.50 retail –Introductory Biology: 116 titles - $22.00 to $138.50 retail –CourseSmart.com: Up to 50% reduction in price of textbooks Range of prices for materials adopted for student use: –Introductory Psychology: 216 titles - $23.50 to $120.50 retail –Introductory Algebra: 234 titles - $40.75 to $126.50 retail –Introductory Biology: 116 titles - $22.00 to $138.50 retail –CourseSmart.com: Up to 50% reduction in price of textbooks

8. Choice of Course Materials Textbooks and Supplemental Material Options Include: E-books Custom books Books online by the chapter Lower-cost texts Practice exams Split editions Online graded homework Black-and-white editions E-tutoring and live tutoring E-books Custom books Books online by the chapter Lower-cost texts Practice exams Split editions Online graded homework Black-and-white editions E-tutoring and live tutoring Abbreviated editions Podcasting Video clips 3-D graphics Web sites Animations Language labs Audio presentations Virtual labs for courses such as chemistry

9. Choice of Course Materials Lowering Student Spending –University of Cincinnati, Physics Textbook by Serway designed for a three-quarter course, sells for $148 net (typical retail: $197). Due to fall off in enrollment from one quarter to the next the book was cut into thirds. Now, the customized text costs $42 net (typical retail: $56) for the first quarter and $38 net (typical retail: $51) for the two subsequent quarters. Potential savings per student: $79. –The University of Akron, Principles of Accounting I and II Covers Williams-Financial Acct. and Hilton-Managerial Acct. Faculty and publisher designed a two-course custom textbook which sells for net $115, typical retail $153. The standard textbooks sell for net $124 each, typical retail $165. Total for both: $330. Savings per student: $177. Lowering Student Spending –University of Cincinnati, Physics Textbook by Serway designed for a three-quarter course, sells for $148 net (typical retail: $197). Due to fall off in enrollment from one quarter to the next the book was cut into thirds. Now, the customized text costs $42 net (typical retail: $56) for the first quarter and $38 net (typical retail: $51) for the two subsequent quarters. Potential savings per student: $79. –The University of Akron, Principles of Accounting I and II Covers Williams-Financial Acct. and Hilton-Managerial Acct. Faculty and publisher designed a two-course custom textbook which sells for net $115, typical retail $153. The standard textbooks sell for net $124 each, typical retail $165. Total for both: $330. Savings per student: $177.

10. Choice of Course Materials Lowering Student Spending –Miami University, Psychology To reduce student cost for this textbook by David Myers, the professor chose to use the e-book instead of a printed text. The print text costs approximately $112.50 (estimated retail price from $90 NET). The e-book costs $56.25 if purchased directly from publisher. Estimated student saving of $56.00 –Wright State University, Biology for non-majors This school is on the quarter system so students were not able to use the entire book Essentials of Biology by Campbell. Faculty and publisher designed a custom version with only the chapters used in the class and materials provide by the lead instructor. Cost of the custom book is net $51.90 (retail cost is typically $69.25). The full version is net $79.20 (retail price typically set at $105.60). Savings per student: $36.35 Lowering Student Spending –Miami University, Psychology To reduce student cost for this textbook by David Myers, the professor chose to use the e-book instead of a printed text. The print text costs approximately $112.50 (estimated retail price from $90 NET). The e-book costs $56.25 if purchased directly from publisher. Estimated student saving of $56.00 –Wright State University, Biology for non-majors This school is on the quarter system so students were not able to use the entire book Essentials of Biology by Campbell. Faculty and publisher designed a custom version with only the chapters used in the class and materials provide by the lead instructor. Cost of the custom book is net $51.90 (retail cost is typically $69.25). The full version is net $79.20 (retail price typically set at $105.60). Savings per student: $36.35

11. Role of Publishers “…publishers are assuming roles that have traditionally belonged to postsecondary institutions.” (GAO) Due to the employment of more part-time instructors, and advances in classroom technologies and class management tools, publishers now maintain specialized, field-based staff dedicated solely to faculty training. (AAP) To meet demand publishers are currently investing an estimated $1 billion to develop digital-based supplemental materials. (James Farmer) “…publishers are assuming roles that have traditionally belonged to postsecondary institutions.” (GAO) Due to the employment of more part-time instructors, and advances in classroom technologies and class management tools, publishers now maintain specialized, field-based staff dedicated solely to faculty training. (AAP) To meet demand publishers are currently investing an estimated $1 billion to develop digital-based supplemental materials. (James Farmer)

12. Policy Considerations Digitally based learning materials used in colleges are an extension of the materials students have become accustomed to in their K-12 years. (AAP) “Focusing only on price may fail to best achieve student success or best meet public policy objectives.” –“Data suggest that publisher-provided online learning courses in early mathematics will improve retention and course completion 5 to 30%” –“Selection of the more expensive bundle by the faculty…saves the state and local governments $146 per enrolled student” –Source: James Farmer Digitally based learning materials used in colleges are an extension of the materials students have become accustomed to in their K-12 years. (AAP) “Focusing only on price may fail to best achieve student success or best meet public policy objectives.” –“Data suggest that publisher-provided online learning courses in early mathematics will improve retention and course completion 5 to 30%” –“Selection of the more expensive bundle by the faculty…saves the state and local governments $146 per enrolled student” –Source: James Farmer